Digital Transformation

Genpact Reports Second Quarter 2022 Results

Genpact

Total revenue of $1.089 billion, Up 10% (12% on a constant currency basis)1,2 
Data-Tech-AI services revenue of $489 million, Up 20% (22% on a constant currency basis)1,2 
Digital Operations services revenue of $601 million, Up 3% (5% on a constant currency basis)
Diluted EPS of $0.38, Down 28%; Adjusted Diluted EPS3 of $0.70, Up 6%

Genpact Limited (NYSE: G), a global professional services firm focused on delivering digital transformation, today announced financial results for the second quarter ended June 30, 2022.

“We are pleased that the momentum we saw coming out of 2021 has continued through the first half of the year.  As we had expected, strong demand for our Data-Tech-AI services was the primary driver of our 12% constant currency year-over-year top line growth for the quarter, while Digital Operations services delivered steady performance,” said “Tiger” Tyagarajan, Genpact’s president and CEO.  “Our priority accounts grew 17% and represented 65% of total revenue.  In a challenging macro environment, we expanded our adjusted operating income margin 190 basis points sequentially on the back of several strategic actions that align to our long-term plan and build agility for the future.”

Key Financial Highlights – Second Quarter 2022

  • Total revenue was $1.089 billion, up 10% year-over-year (12% on a constant currency basis).1,2
  • Revenue from Data-Tech-AI services was $489 million, up 20% year-over-year (22% on a constant currency basis),1,2 representing 45% of total revenue.
  • Revenue from Digital Operations services was $601 million, up 3% year-over-year (5% on a constant currency basis),1 representing 55% of total revenue.
  • Net income was $72 million, down 30% year-over-year, with a corresponding margin of 6.6%.
  • Income from operations was $110 million, down 20% year-over-year, with a corresponding margin of 10.1%. Adjusted income from operations was $183 million, up 3% year-over-year, with a corresponding margin of 16.9%.4,5
  • Diluted earnings per share was $0.38, down 28% year-over-year, and adjusted diluted earnings per share3 was $0.70, up 6% year-over-year.
  • Income from operations and diluted earnings per share include a $39 million restructuring charge related to lease impairment charges and employee severance costs as well as a $7 million loss related to a business designated as held for sale. These items are excluded from adjusted income from operations4 and adjusted diluted earnings per share.3
  • Cash generated from operations was $102 million, compared to $161 million in the second quarter of 2021.
  • Genpact repurchased approximately 1.8 million of its common shares during the quarter for total consideration of approximately $76 million at an average price per share of $42.00.

Full Year 2022 Outlook

Genpact now expects:

  • Total revenue in the range of $4.32 billion to $4.37 billion, up 7.5% to 9.0%, or 9.5% to 11.0% on a constant currency basis,1 compared to the prior full-year outlook in the range of $4.325 billion to $4.4 billion, up 8.0% to 9.0%, or 9.0% to 11.0% on a constant currency basis.1 This full-year revenue outlook now assumes an additional adverse impact of $21 million from foreign currency (at current exchange rates) compared to the prior outlook and includes expected full-year revenue of approximately $28 million associated with a business designated as held for sale.
  • Adjusted income from operations margin6 at the high end of the prior outlook of 16.0% to 16.5%.
  • Adjusted diluted EPS7 in the range of $2.68 to $2.74, compared to the prior outlook in the range of $2.60 to $2.76.

Conference Call to Discuss Financial Results

Genpact’s management will host an hour-long conference call beginning at 4:30 p.m. ET on August 4, 2022 to discuss the company’s performance for the second quarter ended June 30, 2022.  Those who wish to participate can register here to receive a dial-in number and unique PIN to access the call seamlessly. It is recommended callers join 10 minutes prior to the start of the event (although you may register and dial in at any time during the call).  A live webcast of the call will also be made available on the Genpact Investor Relations website at https://www.genpact.com/investors. For those who cannot join the call live, a replay will be archived on the Genpact website after the end of the call. A transcript of the call will also be made available on the website.

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